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A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Unity Software's Debt-to-EBITDA or its related term are showing as below:
U'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -14.21 Med: -3.87 Max: 24.91
Current: -14.21
During the past 8 years, the highest Debt-to-EBITDA Ratio of Unity Software was 24.91. The lowest was -14.21. And the median was -3.87.
U's Debt-to-EBITDA is ranked worse than 100% of 1716
companies
in the Software industry
Industry Median: 1.085
vs U: -14.21
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Unity Software Debt-to-EBITDA Related Terms
Unity Software Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Unity Software's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Unity Software's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Unity Software Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Unity Software's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Unity Software's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Unity Software (U) has a Debt-to-EBITDA of -2.53 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Unity Software. According to the industry distribution chart, Unity Software ranks #999999 out of 1716 companies in the Software industry.
Is Unity Software's Debt-to-EBITDA too high?
Unity Software's current Debt-to-EBITDA is -2.53. Based on the distribution chart, Unity Software ranks #999999 out of 1716 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Unity Software has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Unity Software's Debt-to-EBITDA compare to TYL and DT?
According to the Software industry distribution chart, Unity Software ranks #999999 out of 1716 companies for Debt-to-EBITDA. This places Unity Software in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Unity Software. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Unity Software's current Debt-to-EBITDA is -2.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Unity Software stock overvalued right now?
Based on GuruFocus' analysis, Unity Software (U) is currently considered Modestly Overvalued. The stock's GF Value™ is $25.33, compared to a current price of $29.81 — trading 17.7% above its estimated fair value. The current Debt-to-EBITDA is -2.53. Unity Software's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Unity Software (U), the current Debt-to-EBITDA is -2.53 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Unity Software (U) Overvalued in 2026?
Based on GuruFocus' analysis, Unity Software stock appears to be overvalued.
The current stock price of $29.81 is trading 17.7% above its estimated GF Value™ of $25.33.
GuruFocus considers Unity Software to be Modestly Overvalued.
Key valuation signals for U:
Debt-to-EBITDA: -2.53
GF Value™: $25.33 vs. price of $29.81 (17.7% above fair value)
No single metric tells the full story. See the U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC, and other Americas, and key revenue is derived from the EMEA region. Its products are used in the gaming industry, retail, automotive, architecture, engineering, and construction.
65GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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